Should you start Crypto mining right now?
With the BTC price being on the rise after a short slump during the fall of 2019. It is a great time to think whether you need to stat Crypto mining right now. Is it a good time to get started? Will your investments recoup themselves in the foreseeable future?
- The math behind the BTC mining
- Money management and financial stability are crucial
- The main takeaway
The math behind the BTC crypto mining
It is hard to pinpoint how much you will need to spend before you will be rewarded with your precious 12.5BTC. However, there are several studies that indicate that the median price of mining a single BTC is about $5000.
This number accounts for equipment maintenance, power consumption, and other less significant costs. While ongoing expenses are quite important, there are other costs that should be considered if you want to run a mid-tier crypto mining operation.
- Purchasing rigs. Mining equipment is very expensive. While you can get some decent rigs from the secondary market, you will need to think about overall compatibility of rigs and their productivity in the long run. New equipment can cost you several thousand USD without added costs of installation and setting up.
- Building a facility. You can turn any room into a crypto mining facility. It doesn’t have to be a large lab with sterile air, but a clean room with sufficient air conditioning and humidity control is not easy to come by. You will also need sufficient power supply and some industrial racks to put your equipment on. Depending on your aspirations, the total cost of a fully prepared facility without rigs can be anywhere from several hundred to several thousand dollars.
If you are willing to spend a lot of money to guarantee yourself some additional income in the long run, getting into crypto mining is generally a good idea. Mining operations still pay off if you manage to get a block or two. However, putting direct expenses aside, there are other important aspects of crypto mining that many beginners forget.
Money management and financial stability are crucial
What many newbie miners do not realize is that you need to sustain significant losses before you get your first BTC. You can get lucky and discover a block quickly, but it may take months before you start making profit.
Before that, you will have to pay for electricity, maintenance, and sustaining yourself afloat. Making ends meet after spending a noticeable chunk of money on rigs and electricity is not an easy task if you don’t have a stash or a high-paying job.
You need to prepare and have an income already before venturing into the world of BTC mining. On the other hand, you can start small by purchasing second-hand rigs like Antminer from eBay or Amazon and managing power consumption carefully. In this case, you should focus on less competitive mining areas like Ethereum or Litecoin.
The main takeaway
Crypto currency mining is still a relatively young industry. There are many hidden stones and caveats that have not been discovered. However, it is also a very interesting and rewarding industry that has a lot of room to grow. You won’t be amongst pioneers, but you can be amongst successful ones before the industry is oversaturated to the point where no one can make money.